Data released today, Friday, revealed that the preliminary reading of the Consumer Confidence Index issued by the University of Michigan was very negative, recording 57.7 points during the current May, which is less than the market expectations of recording around 63.0 points for the index. The previous reading for April recorded about 63.5 points.

This composite index is measured based on a survey conducted on consumers. The University of Michigan conducts a monthly survey of 500 households regarding their financial situations and their expectations about the economy in the near and distant future. It is worth noting that consumer confidence is directly related to increased consumer spending rates.

At the same time, the preliminary reading of the inflation expectations issued by the University of Michigan during the same period recorded 4.5%, which is lower than the previous reading of the index that recorded about 4.6% during last April.

This index measures the percentage of consumers who expect changes in prices of goods and services over the next twelve months. Inflation expectations indicate the actual inflation conditions, as these expectations can be realized. The main reason behind this is the desire of workers to increase wages, so they believe that prices will rise.